Foreign investors see local realty devalued
The pandemic has forced huge changes in the plans and targets of the major foreign investment funds that have positioned themselves in the Greek real estate market over the last few years. The expansion of the 40% rent discount to all affected enterprises in commerce, food service and tourism for the month of June too, will signify a revenue drop for over three months in total.
Consequently there is concern that these reductions may be kept in place for the rest of the year as well - if not next year too - unless market conditions improve.
This situation is definitely not exclusive to Greece, but is certain to bring commercial property values down due to the reduced revenues they will fetch in the coming months. This will have a negative impact, mainly on the funds that had leveraged a large section of their capital. For example, in the previous crisis, in the early...